Can the Principal's liability be diminished by extensions of time granted to the Franchisee by Bumper Man?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Principal hereby unconditionally agrees to be personally bound by, and personally liable for, the breach of each and every provision in the Agreement, both monetary obligations and obligations to take or refrain from taking specific actions, or to engage or refrain from engaging in specific activities.
Principal consents and agrees that it will render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so.
Principal consents and agrees that its liability under this Guaranty will not be contingent or conditioned upon Franchisor pursuing any remedies against Franchisee or any other Person. Principal waives any right it may have to require that Franchisor bring an action against Franchisee or any other Person as a condition of its liability. Principal further waives protest and notice of Franchisee's default or nonperformance of any obligation that is guaranteed by Principal or notice of demand for payment issued by Franchisor, and any and all other notices and legal or equitable defenses to which Principal may be entitled in its capacity as guarantor.
Principal consents and agrees that such liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other concession that Franchisor may periodically grant to Franchisee or to any other Person, including, without limitation, the acceptance of any partial payment or performance or the
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the liability of the Principal is not diminished if Bumper Man grants the franchisee an extension of time. The Principal unconditionally agrees to be personally bound by and personally liable for any breach of the Franchise Agreement. This includes both monetary obligations and obligations to take or not take specific actions.
The Principal consents and agrees to fulfill any payment or performance required under the agreement if the franchisee fails or refuses to do so punctually. The Principal's liability is not contingent on Bumper Man pursuing remedies against the franchisee or any other person. The Principal waives any right to require Bumper Man to bring an action against the franchisee before enforcing the guaranty.
Furthermore, the Principal waives any protest or notice of the franchisee's default or nonperformance, as well as any notice of demand for payment issued by Bumper Man. The Principal also waives any other legal or equitable defenses they may be entitled to as a guarantor. The Principal's liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other concession that Bumper Man may grant to the franchisee or any other person.